Trading Updates: Selling Spree May Be Near An End

With nearly 41 million shares traded since the announcement of awards on May 31, the selling spree that has taken the share price of ERHC Energy down from a recent high of $0.89 to yesterday's close at $0.497 should be about over, and there were several sharp bounces from the $0.50 resistance level yesterday to buttress this claim.

Today's action may be more of the same, or it may finally turn green for good as the price heads back to levels we anticipated upon becoming the "great winner" (as one newspaper article described us) of the Nigeria-Sao Tome and Principe Joitn Development Authority's second round of Gulf of Guinea Joint DDevelopment Zone oil concession awards.

ERHC On The Move, which holds 120,000 shares long in its portfolio at an average price of $0.4374, has seen some $45,000 in gains evaporate in the past seven days of trading but remains unshakeably confident that even if the price goes to $0.28 in the near term (that was last year's low), it will seek higher ground well above a dollar within the month. We don't expect it to go that low, nor even test $0.40 again, before that spike occurs.

Update, 3:59pm, 6/8/05: Scratch the $0.55 close, but it looks like we're going to be in the green when the day ends a few minutes from now. Volume is 2,185,100 shares and the Bid and Ask are $0.505 x $0.51.

Update, 3:45pm, 6/8/05: Some 2,732,300 shares have traded, and the price is climbing away from today's low of the day, $0.455, and now at $0.515 we are in the green as the close draws near. The rebound is consistent with the volume of selling that had to occur to raise cash for signature bonus fees, so the upturn could head us pretty far north of here. We should probably look for a $0.55 close.

Update, 2:30pm, 6/8/05: The price is $0.49, the Ask, with the Bid at $0.485.
Volume has reach 2,013,100 shares.

Update, 11:50am, 6/8/05: ERHC Energy officer John Coleman, a spokesman for the company, has filed a Form 144 with the SEC to allow him to sell 3,550,000 shares as of June 3, 2005. These sales would not be related to the sale of company shares, but certainly helped drag the price down. We now await a Form 144 from Chrome Energy, if indeed it is required as a Grand Caymans Island offshore to file. GEECF, which won part of Block 3 through its subsidiary Sahara Petroleum Exploration, recently terminated its filing obligations by registering as a Caymans offshore. No such filing has been made by ERHC Energy, however, but the 310 million shares owned by Sir Emeka Offor, our Nigerian chairman and a Naira billionaire (133 to the dollar), are all controlled now by Chrome, in which he is the sole stockholder.

Update, 11:42am, 6/8/05: The price is $0.487, the Ask, with the Bid at $0.48 and 1,738,900 shares traded.

Update, 10:06am, 6/8/05: The price is .475, after hitting a low of $0.455 shortly after the opening and dreaking through the $0.50 resistance in a definitive way. Bid and Ask are $0.475 x $0.48. Volume is a very brisk 1,102,100 shares, a good thing for longs as the selling grows closer to an end.

Update, 8:50am, 6/8/05: The bid is $0.495 and the Ask is $0.495 and the Ask is $0.499, while yesterday's closing price was $0.497. Pioneer Natural Resources and Noble Energy have both filed 8-Ks indicating ERHC Energy as their partners in the successful consortium bids for Gulf of Guinea blocks in the Joint Development Zone. Presumably, ERHC Energy will also soon file an 8-K, clarifying its obligations with respect to the signature bonus fees and its participation in the award of additional acreage above its preferential rights.